The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1887-08-05
4 BANK wRrckep.


SaeAier Clements uess eho HunAs q ~
Lsavenworth Savings BAak and Takes Up
III Residence IN Cauoas.
1RAvsNwoRfH, Kan, July a-Yesterday
morning tho Citizens Savings Bank failed
. open its doors for business, and an
aounced on piece Of paper pasted to the
window the following: This bank has
made an assignment for the benefit Of its
creditors" 1t is the most disastrous fail
ure that has occurred here for years, owing
% the large number Of small deposits, all
coming from the poorer classes. The liza
Utilities will reach over $4,000, while the
naeets are only about Ga TO- In the Ian
guage Of John Wilson, president of the
Great Western Manufacturing Company. of
&Ais city, who was made temporary assiyne
s1t's Q complete wreck"
r p. Clements the president ard cashier,
has absconded, leaving for Canada Sunday
night. and though the officials Of the banx
knew that he had gone for good and that
the institution was a wreck they continu. i
% receive deposits until the close
Of banking hours Tuesday afternoon.
Among tine list of Gepositors there
ara not half dozen merchants of Leayen-
worth They did not seem to place any
confidence in Mr.. Clements, who came to
the city in 1854. when he organized the
Metropolitan National Bank, which only
aboat month ago was merged into the
Citizens Savings Badk.
The direct cause of Clements sudden de-
parture was the fact that the new board II
directors who joined In the reorganization
Of the bank insisted upon statement OF
its condition before they would act in any
capacity. Clements had kept putting them
on from day to day, feigning illness, until
finally last week an auditing committee
WAS appointed. This ne could not stand,
and after conveying all his property to his
brother-in-law, Mr.. Chinery, who lives in
the country, he LETT for the West. These
recopveyed in favor of the bank and
placed on record. They consist of home
stead. town lots and a small farm.
The Ascending officer left letter ad.
dressed to the directors, in which he stated
that when he came to Leayenworth he was
in debt about $l6 coo, having invested in
mining stock and other enterprises, in all of
which he lost. This he repaid out of the
banks money. He had also used $2229.0,O in
wheat deal and had lost that sum. Other
bad specuiations made a total Indebtedness
70 the bank Of $5l.00a. He stated further
sAat he was a ruined man and couldn't face
hose whom he ruined. 1t appears that
most Of this Indebtedness was incurred dur.
ing the existence Of the Metropolitan Bank,
which he organized, and upon its being
& erged into a savings bank he gave notes
10 cover the amount, which the directors
considered good.
w. B. Siosson, a member OF the State
Temperance Union and a director and
stockholder in the bank. with nominal
amount, appeared to be the head and front
Of the institution. He was instrumental in
drawing in number of new directors and
soliciting deposits. Clements was a great
Sunday school man. He attended church
regularly and was in the habi. of making
talks Id class meetings.
Later developments tend to the belief
that the depositors will get their money IN
full, the directors pelng responsible. a
good majority of the depositors are poor
people. aud grea: excitement prevailed
here throughou. the day. The deposits
range from 81 up to 5000.